ESAF Bank's Profit Surge: Swing from Loss to Gains

ESAF Small Finance Bank reported a net profit of Rs 24 crore in Q4 FY26, recovering from a Rs 183 crore loss the previous year. The bank's total income rose to Rs 1,196 crore, with improved asset quality and capital adequacy. It also raised Rs 150 crore from Tier II bonds.

ESAF Small Finance Bank has turned its fortunes around, reporting a net profit of Rs 24 crore for the fourth quarter of FY26. This marks a significant recovery from the Rs 183 crore loss reported in the corresponding period of the previous year.

The bank's total income surged to Rs 1,196 crore during the review period, compared to Rs 1,037 crore in the same quarter of the preceding fiscal year. Interest income also grew, reaching Rs 995 crore, up from Rs 892 crore year-on-year.

Asset quality showed commendable improvement, with gross non-performing assets (NPAs) decreasing to 5.41% from 6.87%. Net NPAs also eased, dropping to 1.77% from 2.99% over the fiscal year. Furthermore, the bank's capital adequacy ratio improved to 22.2%. It also successfully raised Rs 150 crore through Tier II bonds.